Ireland will be the first country in the eurozone to give a democratic verdict on the German-backed rules for the single currency after Dublin announced it would hold a referendum on the treaty.

The euro declined on foreign exchanges after the Irish prime minister Enda Kenny told the Dáil that the Republic's chief law officer had advised the cabinet that "on balance" a referendum should be held under the terms of the Irish constitution.

Kenny is now expected to fight for concessions from Brussels on the terms of Ireland's swingeing euro bailout as the price for heading off a potentially embarrassing electoral rejection of the "fiscal compact" tightening rules for the 17 eurozone members.

Ireland, which has twice rejected EU treaties, must hold a referendum on any international treaty that has an impact on the country's sovereignty. The plebiscite on the EU fiscal compact would have to be held by Easter and by June at the latest.

The taoiseach said: "It gives the Irish people the opportunity to reaffirm Ireland's commitment to membership of the euro, which remains a fundamental pillar of our economic and jobs strategy. More binding and enforceable fiscal rules as a result of ratification will be good for both Ireland and the wider eurozone, and will cement growing international confidence in Ireland's recovery."

Neil Mellor, of the bank BNY Mellon, said Dublin's announcement raised fresh doubts about the future of the single currency, even before the latest bailout for Greece has been released. "It's death by a thousand cuts," he said.

When G-Pap announced a referendum Merkozy removed him and installed their own Viceroy.

If it looks like a 'No' (and it does on recent polling) he'll be out.

"The problem with capitalism is that eventually you end up with everyone else's money" RK"We have now entered The Great Rebalancing 2007-20xx" - RK"Gold will go to $1000, Silver to $18" - RK August 2011QE £100bn and build 1m council homes - RKCarney announces the launch of Empire 2.0 - Rise of the Banksters Oct '13

The EU had a choice to make in Greece- save the people or save the banks- they chose the banks.

And that will be their undoing.

No its actually Greeces choice, they can leave the EU tomorrow if they want, never had to join, could have left any time, its entirely up to the population, they either want to or they dont and if their politicians have other ideas then they deal with them, its always been Greeces choice but just like you it seems they put too much faith in their politicians actually giving a toss about the people they were supposedly representing (dont laugh) and in this case Greece, next year someone else, in a few years someone else, theyve all just been running a large degree debt cycle and the beauty of these rare events is that they show politicians up for what they actually are in the wider scheme of things, irrelevant and fundamentally unnecessary, countries are made up of people, wealth is created by people acting, not politicians, politicians are no more or less than modern societies parasites redistributing to them and their friends the whole multi decadal cycle but noone gives a toss until the debt cycle runs its course and quelle suprise currency union in Europe once again goes exactly the same way as every other attempted major currency union in Europe when the debt cycle ends (its not like this hasnt been tried before going in to the top of debt cycles going back throughout Europes chequered and bloody history), down the sh!tter of social deterioration all created by politicians selling their country out in the name of vanity, money and Power

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCEIf DEBT is the problem REPAYMENT is the solution or you default

"The trouble with the world was that prices were so low that only the rich people could buy and the aim of the Conference was to raise them to a point where it would again be possible for poor people to buy something."

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

Been following this since the Irish vote on the SEA in 1986. I bet the referendum proposition will have a rider about future referendums ie. Irish fiscal authority to be subjugated to EU commission control - but debt to be written off, or at least Germany to assume payment of unsecured bondholders in Irish banks. Something crude.

Won't do much for employment or house prices, but public sector has already taken a big hit, benefits will be paid, and voters will evade tax like their fathers did in the 1970s.

No its actually Greeces choice, they can leave the EU tomorrow if they want, never had to join, could have left any time, its entirely up to the population, they either want to or they dont and if their politicians have other ideas then they deal with them, its always been Greeces choice but just like you it seems they put too much faith in their politicians actually giving a toss about the people they were supposedly representing (dont laugh) and in this case Greece, next year someone else, in a few years someone else, theyve all just been running a large degree debt cycle and the beauty of these rare events is that they show politicians up for what they actually are in the wider scheme of things, irrelevant and fundamentally unnecessary, countries are made up of people, wealth is created by people acting, not politicians, politicians are no more or less than modern societies parasites redistributing to them and their friends the whole multi decadal cycle but noone gives a toss until the debt cycle runs its course and quelle suprise currency union in Europe once again goes exactly the same way as every other attempted major currency union in Europe when the debt cycle ends (its not like this hasnt been tried before going in to the top of debt cycles going back throughout Europes chequered and bloody history), down the sh!tter of social deterioration all created by politicians selling their country out in the name of vanity, money and Power

They were going to have a a vote on leaving weren't they?

A few days later the prime minister was outsted and the bankers parachuted in.

"Asians make things and sell them to Americans, who borrow money from their suppliers (on the inflated value of their houses) in order to continue living beyond their means. Asians take their profits and either relend them to Americans...or use them to buy more productive capacity, in America and elsewhere.

For those who wonder where this trend will lead, we offer a guess: The average American will be left with a shoeshine kit and instructions on how to say 'please' and 'thank you' in Chinese...."

Bill Bonner.

Socialists want socialism for everyone else, but capitalism for themselves, while capitalists want capitalism for everyone else, but socialism for themselves.Link